Detailed information regarding a standby letter of credit can be found here.
A brief summary:
How the Letter of Credit Works
You can apply for a Standby Letter of Credit, which allows you to pledge securities in your eligible account as collateral, replacing the traditional cash or bond deposit. This allows you to access credit while maintaining your portfolio’s current exposure to the market. The collateral that backs the Standby Letter of Credit must maintain a certain minimum value.
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